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Gastrade launches market test for Alexandroupolis LNG terminal

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LNG Industry,

Greek utility company, Gastrade S.A., has launched the first phase of the market test for the Alexandroupolis LNG terminal, in accordance with the ‘Guidelines for management and allocation of capacity on the Alexandroupolis Independent Natural Gas System (Alexandroupolis LNG terminal) according to paragraph 6 of article 36 of Directive 2009/73/EC’. This is a non-binding, Expression of Interest Phase. Companies interested in seeking services and capacity in the terminal have 45 days to return an Expression of Interest notice.

The project comprises: an offshore FSRU, for the reception, storage and re-gasification of LNG, which will be stationed offshore the town of Alexandroupolis in Northeast Greece; a mooring; and a system of a subsea and onshore gas transmission pipelines, through which natural gas will be delivered to the Greek National Natural Gas Transmission System (NNGTS), and onwards to the final consumers in Greece, Bulgaria, Serbia, FYROM, Turkey, Romania, and all the way to Ukraine and Hungary.

The FSRU will have a nominal regasification and send-out capacity of 530 million ft3/d, equivalent to 600 000 m3/d (5.5 billion m3/year) and a peak technical regasification and send-out capacity of 800 million ft3/d, equivalent to 950 000 m3/d (8.3 billion m3/year). The LNG delivered and stored at the FSRU will be regasified and transmitted to the downstream natural gas system at the flow rate requested by the project users, meeting the specifications of the respective downstream natural gas system (quality, pressure, temperature, etc.). There is also the potential for a future tie-in to the Trans Adriatic Pipeline (TAP) gas transmission system.

For Bulgaria and markets adjacent and beyond Bulgaria, the project will transmit natural gas through the Interconnector Greece-Bulgaria which is planned for commercial operation within 2020.

The project aims to provide an alternative source of gas supply to South East European markets and will offer to the region security of supply, diversification of gas routes and sources, price flexibility and enhanced competition. It will satisfy the additional gas demand in the region mid and long term, give access to LNG and contribute to lifting the isolation of markets and enhance gas market penetration.

The tender process for the construction of the project was launched in September this year and construction is expected to begin in 2Q19. Commercial Operation Date for the project is planned for 4Q20.

The project is included in the European Union list of projects of Common Interest (PCI) and is fully licensed.

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